UK outlines proposed tax break for shale gas

The UK government outlined a proposed tax regime for shale gas, including a new shale gas allowance based on existing field allowances for oil and gas production.

The proposed allowance would reduce the tax on a portion of a company’s production income to 30% from 62%, the UK Treasury said in a statement. No UK shale gas wells are on production yet.

A recent report by the British Geological Survey revealed that there is more than twice as much shale gas in the north of England than there was previously thought in the entire country.

Alongside this, new guidance was published July 10 explaining to industry and local communities how applications for exploratory shale gas developments should proceed through the planning system.

The local planning guidance complements measures to help support the shale gas industry. Decisions will be made by councils in a locally led planning process.

The government said it plans a 3-month consultation on the proposed tax break before putting the proposal before Parliament. Called shale gas “pad” allowance, the proposal could go into the finance bill next year, a treasury official told reporters.

Related Articles

DOE approves LNG exports to non-FTA countries from Oregon project

03/24/2014 The US Department of Energy conditionally approved Jordan Cove Energy Project LP’s application to export LNG through its proposed terminal on Orego...

MARKET WATCH: Front-month crude oil contract closes up, gas down on week

03/24/2014

The front-month crude oil contract ended the week higher Mar. 21 while natural gas futures prices edged slightly lower.

Judge bars Anadarko e-mails as evidence in Macondo blowout hearing

03/21/2014 A federal district judge in New Orleans refused to accept e-mails between Anadarko Petroleum Corp. and BP PLC as evidence in a hearing to determine...

Industry group welcomes most UK budget moves

03/21/2014 Oil & Gas UK voiced support for all but one of several measures affecting the offshore producing industry announced in the UK government’s annu...

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected